RD295 - Virginia-Israel Advisory Board FY2013 Annual Review
Executive Summary: FY 2013 Results
1. The Sabra factory in Chesterfield County continues to be a major economic success for the Commonwealth despite the challenging economy. The Sabra facility opened its Center of Excellence in April 2013 and announced that it would expand its production facility to nearly double its current size. Sabra added approximately 90 jobs during FY2013 and expects to add another 200 jobs over the next 24 months.
2. The VIAB initiative that led to the establishment of the “Virginia Israel Bio Sciences Commercialization Center” has progressed to become Virginia Life Science Investments (VLSI). A total of ten Israeli companies are now part of the initiative. An $18 million fund has been raised to support the growth of these companies. The VIAB was responsible for securing the fund’s first Israeli investor who has invested $500,000 of direct investment into Virginia via the fund. Significantly, EOS of Tidewater expanded its manufacturing facility in FY2013 to produce counter tops based on Cupron technology. Cupron is one of the original companies the VIAB introduced to the VLSI during a Gateway program. Total jobs for EOS should reach 48 people.
3. The VIAB is building a strong relationship between Israel and Virginia agro technology. The VIAB has teamed with Virginia Tech to evaluate and facilitate Israeli agro tech projects/investment in the Southwestern part of Virginia. The areas being considered are: aquaculture, turn-key greenhouse projects and to a lesser extent poultry housing. The aquaculture project itself can add about 450 new jobs to Virginia and establish Virginia as a US leader in aquaculture.
4. Despite lackluster economic conditions, 168 new jobs were added in FY2013 from VIAB efforts representing additional tax revenue to the State of $526,650 on a tax base of $9.2 million.
5. From FY2000 – 2013, the VIAB has been involved with activities adding approximately 1,638 net new jobs to Virginia’s workforce. These jobs have generated approximately $47.3 million in state tax revenues. If we discount this amount by a conservative 78% for multiple parties involved in the decision process to establish a facility in Virginia, the amount of tax revenue generated by the VIAB is $10.4 million which represents a 495% return on Virginias’ investment in the VIAB over the past thirteen years.
6. The VIAB projects that the current pipeline of activities will increase jobs in Virginia by 343 jobs over the next one to three years. The number could increase to 793 if the current aquaculture project under review is executed. This would translate to additional state tax revenue ranging from $1.03 - $2.38 million based on a tax base ranging from $17.2 - $39.7 million.
7. The State Auditor of Public Accounts completed its Audit for FY2013. Their findings are as follows:
• Proper recording and reporting of all transactions, in all material respects, in the Commonwealth Accounting and Reporting System
• No matters involving internal control and its operation necessary to bring to management’s attention;
• No instances of noncompliance with applicable laws and regulations or other matters that are required to be reported.
The primary mandate of the Virginia Israel Advisory Board continues to be economic development in Virginia. Our goals and strategies are:
1. Facilitating new Israeli company entry into Virginia.
2. Working with the Israeli companies already located in Virginia via networks to help facilitate internal growth and expansion.
3. Leveraging the company’s strength in order to create a multiplier effect for job creation.
4. We devote from 10% - 15% of our energies to special educational and cultural projects.